CNP (Card Not Present)

« Back to Glossary IndexCard Not Present (CNP), also called "key entered, or keyed-in", refers to any transaction that occurs when the card being used is not physically present. The most common examples of card-not-present transactions include: purchases made on the phone or online. What's the point? Card-not-present transactions differ from card-present transactions in two fundamental ways: risk […]

Card Not Present (CNP), also called "key entered, or keyed-in", refers to any transaction that occurs when the card being used is not physically present.

The most common examples of card-not-present transactions include: purchases made on the phone or online.

What's the point?

Card-not-present transactions differ from card-present transactions in two fundamental ways: risk & reward.

Card Not Present Risk

A merchant with no physical access to a credit card being used for a transaction inherently increases the potential/opportunity for fraud.

Card Not Present Reward

Merchants with the ability to sell to consumers who are not present, and/or their credit card is not present, presents incredible upside benefits, primarily in the form of convenience.

Just how much upside? In 2019, retail e-commerce sales worldwide amounted to 3.53 trillion US dollars and e-retail revenues are projected to grow to 6.54 trillion US dollars in 2022. Online shopping is one of the most popular online activities worldwide.(source)

Card Not Present Transaction Examples

  • Online: Consumer makes a purchase online, most likely via an e-commerce transaction. Also can include online invoices.
  • Phone: Consumer provides credit card information over the phone.
  • Mail: Consumer makes a purchase by filling out credit card information onto a sheet and mailing it in to a merchant.
  • Salesperson: Consumer makes a purchase from a salesperson who writes their card information onto a sheet, but the transaction is processed later.
  • Subscriptions: Consumer is setup on a recurring subscription, or auto-bill.

Card Not Present Transaction Requirements

Because of the inherent risk with card-not-present transactions, there are certain mandatory requirements when processing a CNP transaction.

Card information required for processing a CNP transaction includes:

  1. Card number.
  2. Full name on card.
  3. Billing address of card, or at least the zip code.
  4. Card expiration date.
  5. Card security code (CVV).

Related Terms:

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